encrypt_loopback.txt

# load required kernel modules
modprobe cryptoloop
modprobe aes

# Create loopback filesystem (change count according to your requirement)
dd if=/dev/urandom of=enc.img bs=1M count=50

# Setup password and create loopback device
losetup -e aes /dev/loop0 enc.img

# create filesystem
mkfs -t ext2 /dev/loop0

# mount filesystem
mount /dev/loop0
mount -o loop,encryption=aes enc.img /media/disk